It’s a massive shake-up. Property investors are now facing tougher restrictions. Here’s why it’s time to urgently diversify into stocks.
They say it can’t be done, but here at Wealth Morning we attempt to broadly forecast what’s coming next for the economy. In this section we are looking at the property market.
Once you understand the underlying forces which drive the economy, you will have access to insight that few people ever attain.
It has less to do with the movement of central banks or the stock market. Or movements in interest rates, inflation, or some other mechanism.
It’s based on the real estate market.
What happens in the real estate market underlies the economic cycle. And the cycle simply continues to repeat.
Property Markets History
A man by the name of Homer Hoyt identified the repetition of this real estate cycle in a book written back in 1933, called ‘One Hundred Years of Land Values in Chicago.’
A study of history as Homer Hoyt did it, with a focus on land values, proved the economy moved in a very clear sequence of roughly 18 to 20 year cycles.
It’s directly related to land and property price and it repeats regardless of government policies and the type of government in power.
And nothing has changed since Homer Hoyt wrote the book in 1933. The real estate cycle simply keeps reaffirming itself.
The financial reforms initiated after the global financial crisis, have only guaranteed yet another real estate cycle, as that crisis was not financial in nature.
It was a land crisis
And whilst the underlying cause of the cycle is ignored, the real estate cycle must repeat.
It’s a clear case of market failure, but our government hasn’t done much. Here’s why our housing crisis needs to be urgently addressed.
Investing in the stock market and solving the housing crisis aren’t mutually exclusive. They are more closely connected than you might think.
House prices have escalated sharply in recent years. It’s a generational dilemma. Do millennials still have a shot at home ownership?
The true rate of inflation has been underestimated in New Zealand. Housing is the main cause. Here are 3 ways we could fix this problem.
It’s the latest edition of our radio show. Join our panel of experts as they discuss how to find margin of safety in a rising economy.
New Zealand’s housing debt is now so large that it now comprises almost the entire economy. Can we solve this addiction? Is it too late?
It’s the stunning tale of two different housing markets. One has an undersupply. The other has an oversupply. What can we learn from this?
It’s shocking: New Zealand has the highest rate of homelessness in the OECD. How has it reached this point? Here’s our urgent solution.
Which gives you the most upside? Real estate or stocks? Here’s a quick and easy explanation of the risks and opportunities involved.
Aiming to sell a high-end property? Here’s how you can market your home to the right buyers and secure the best possible deal.
Right now, mortgage interest rates are at record lows. Should you take advantage of this unique situation? What’s the best way to do it?
You can expect turbulence as we enter the home stretch of the US election on November 3. But could a relief rally be waiting for us after?
One exceptional company. Five opportunities for growth. Here’s why this profitable stock is your gateway to the coming resource boom.